PKG Dividend
Although PKG has a dividend of 1.25 with an ex-dividend date of Jun 13, you can sell covered calls on Packaging Corporation of America to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Packaging Corporation of America (PKG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 175.85 | 218.74 | 188.79 | -1.60 | 691K | 20 | 17B |
PKG Dividend-Like Income Using Covered Calls
With PKG at 188.79, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 5.66 | 1.6 |
| 5% | 9.44 | 2.6 |
| 10% | 18.88 | 5.2 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | GRAL dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | DOCS dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | CAVA dividend | |
| 4. | TSLA dividend | 9. | GLD dividend | 4. | RCAT dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | ASPI dividend | |
Want more examples? PKE Dividend | PKOH Dividend
